News and views from the realty scene
By : Anna Staniszewska
Irish-based hotel operator Jurys Doyle Hotel Group plans to expand its operations into Poland with the development of four to five three-star hotels.
"We've been researching the Polish market for some time," said chief executive Pat McCann. He said his company is interested in Poland because of its imminent European Union accession coupled with its relatively high economic growth.
But McCann refused to comment on how much money would be invested in the country or the locations of potential sites.
Jurys operates 30 properties in Ireland, the UK and the United States. Its pre-tax profits increased 18% to O32.8 million for the last six months of 2000.
But despite high occupancy rates, many international hotel chains remain lukewarm about investing in Poland. International groups such as Marriott, Sheraton and Radisson SAS have all opened hotels. But only two chains have targeted Poland for more investment: the U.S. Global Hotels Development (Holiday Inn and Express by Holiday Inn) and Norway's Qubus Hotel Management, which has hotels in Gorzow and Zielona Gora.
"Many investors have pulled back," said Marceli Krol, president of Global Hotels Development, adding that bureaucratic procedures are the main obstacle for investors. He also said Warsaw, Krakow and Wroclaw are becoming oversupplied, with more hotels being built and more chains on the lookout for plots. But he said every city above 200,000 should have at least one large hotel with high occupancy rates. "Poland is not getting enough investment in the three-star category," Krol said.
As a result of the Russian crisis, the number of business people visiting Poland fell slightly in 1999 to about 18 million from 18.8 million in 1998. Last year, the number fell further with an estimated 17.7 million visitors, according to the Tourism Institute. Mostostal Invest to sell office development
The Mostostal Warszawa headquarters on ulica Konstruktorska in Warsaw's Mokotow district has been sold to an unknown Israeli investor for $12.5 million. Mostostal Warszawa, a general contractor, and its real estate subsidiary Mostostal Invest, refused to comment on the deal.
Mostostal Warszawa's 9,000 square-meter office block belongs to Mostostal Invest developments. The company has also invested in residential projects but this was its first completed office development. Anna Wolek, Mostostal Warszawa's spokeswoman, said the supervisory board will meet this week. She wouldn't say if Mostostal Invest's other developments are for sale. Yield from the purchase is expected to be above 13%, which reflects the value of the building and its location.
Pascal in Katowice
France's Pascal Polska plans to invest zl. 560 million ($136.6 million) into Katowice's Dolina Trzech Stawow district near ulica Gornoslaska. The development will comprise the Millennium office building, the Europark business park, a retail section and entertainment facilities. The company plans to sell the complex after completion.
As part of the second development phase, Millennium is an 11,000 square-meter B-class office building to be completed by summer 2001. Letters of intent for leasing have been signed for 85% of the facility, with 65% already finalized, according to Pascal.
Europark business center's first three buildings should also be ready by this summer. The completed project (scheduled for 2003) will include 17 two or three-story buildings, varying in size from 950 to 1,600 square meters. Besides office space, there will be retail outlets such as sport equipment supplier Go Sport and Buromarket, an office equipment supplier.
Also, an 11-story, four-star hotel with 280 rooms should be built within two years. Pascal also plans to invest in a 14-screen movie theatre. These developments will cover 20 hectares and will be completed by 2004.
Other projects in Katowice include Canadian firm Chelverton's Nowe Centrum scheduled for 2002. This will bring 71,000 square meters of office, retail and leisure space onto the local market. Business Center Katowice (BCK) is the only A-class office building with more than 20,000 square meters of mix-use space in the city. Tomasz Drag, head of Slaska Gielda Nieruchomosci representing BCK, said there is a large demand for modern offices in Katowice.
Announcements
German insurer Allianz is the first tenant in Centrum Biurowo-Finansowe on ul. 17 stycznia in Warsaw. With Knight Frank Nieruchomosci as leasing agent, the firm is taking up 700 square meters in the 3,000 square-meter B-class development. Rents for the building are $19 per square meter.
LeasePlan Fleet Management, an international car fleet management company, has leased 435 square meters in the Bokserska office building. France Telecom will occupy 350 square meters at Europlex, a 25,000 square-meter office building on ulica Pulawska. DTZ is the exclusive agent.
Warehouses
TKG International/CEIDCO developments has signed two deals. Cryovac, a U.S. plastic packaging firm, has taken 1,909 square meters in the Ozarow Business Center. U.S.-based ATM supplier Diebold has also leased 500 square meters at the Warsaw Distribution Center.
